Corporate Governance

Compliance Officers Meet in Washington

By Susan Weiswasser

Mutual fund and investment advisor Chief Compliance Officers met yesterday in Washington to attend the SEC?s third annual CCOutreach national seminar. The program is designed to help the officers improve their compliance programs by promoting a high level of communication and coordination between themselves and the Commission.  In 2004, the SEC began requiring funds and companies to engage compliance officers to help protect investors from substandard management or illegal activities by managers. The national program, and a regional one as well, was created to address issues raised by the rules changes.

Over the past three years, the seminar has, among other things, informed attendees of the expectations of the SEC during the annual review process; educated them on handling investigations into improper trading practices and market timing; and guided them as to how to best set up appropriate and comprehensive compliance programs that suit the needs of their firms and investors. This year, the seminar put special emphasis on the importance of proper valuation of funds, especially in light of rough conditions in the market.

We applaud the SEC's efforts to develop ongoing relationships with compliance officers outside of the examination process. While this can not guarantee that investors will never be victims of greedy or dishonest managers, it provides a forum where up-to-date information can be imparted and ideas can be shared that can hopefully help prevent some of the abuses investors have dealt with in the past.

Full post as published by PomTalk on November 15, 2007 (boomark / email).